Net income is the profit your business earns after expenses and allowable deductions. It represents the amount of money remaining after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from a company's total revenue.
The total revenue in an accounting period subtracting (minus) all expenses during the same period. Net income is your actual take-home pay after all adjustments.
The formula for net income is as follows:
Total Revenue - Total Expenses = Net Income
|Costs of Goods Sold||5,00,000|
|Total Operating Cost||3,70,000|
By using the formula we can see that:
Net Income= 10,00,000 - 5,00,000 - 3,70,000 - 50,000 - 50,000 = INR 30,000